No power tariff hike for FY 2026-27 in Andhra Pradesh: ERC Chairman PVR Reddy

The Chairman says the tariff order is a crucial exercise aimed at ensuring transparency and financial stability
APERC Chairman P Venkata Ramana Reddy releases the Retail Supply Tariff Order for the financial year  2026-27 in Kurnool on Wednesday.
APERC Chairman P Venkata Ramana Reddy releases the Retail Supply Tariff Order for the financial year 2026-27 in Kurnool on Wednesday.(Photo I Express)
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KURNOOL: Andhra Pradesh Electricity Regulatory Commission (APERC) Chairman P Venkata Ramana Reddy announced that there will be no increase in electricity tariffs for any category of consumers in the State for the financial year 2026-27.

On Wednesday, APERC Chairman PVR Reddy along with other officials released the Retail Supply Tariff Order for the financial year 2026-27.

The tariff order along with the DISCOMs’ True-up/True-down and Performance Review Order for FY 2024-25 also formally unveiled at APERC office in Kurnool.

The Chairman, speaking on the occasion, stated that the tariff order is a crucial exercise aimed at ensuring transparency, the financial stability of power distribution companies, and the protection of consumer interests.

He noted that the Commission has carefully reviewed all relevant factors, including operational costs and public feedback, before finalising the order. He explained that the Commission has issued orders on retail electricity tariffs along with the true-up and performance review of DISCOMs for FY 2024-25.

The state’s power distribution companies (DISCOMs) had proposed a revenue gap of Rs 17,508.17 crore. However, the Commission approved a reduced gap of Rs 15,790.57 crore after detailed scrutiny of filings and stakeholder consultations.

The Government of Andhra Pradesh has committed to bridging this gap, ensuring that no additional burden is passed on to consumers.

PVR Reddy highlighted that around 1.13 crore domestic consumers will benefit from the decision, as tariffs remain unchanged.

Additionally, nearly 22 lakh agricultural consumers will continue to receive free power supply, while about 22 lakh consumers from Scheduled Castes, Scheduled Tribes, and economically weaker sections will receive power either free or at concessional rates through Direct Benefit Transfer (DBT).

In a significant relief to commercial users, tariffs have been reduced from Rs 12.25 per unit to `9.95 per unit, benefiting nearly 2 lakh consumers.

The Commission has also increased the load limit for cottage industries from 10 HP to 20 HP, extending concessional tariffs to around 18,000 such consumers.

The APERC Chairman also announced several structural changes, including the creation of a separate tariff category for solar module manufacturing industries to promote renewable energy.

Certain sectors like water purification plants and printing press units have been reclassified under the industrial category. The Commission rejected key proposals from DISCOMs, including changes to Time-of-Day tariffs and removal of the green power category. It also directed DISCOMs to improve efficiency, reduce arrears, and enhance electrical safety measures across the state.

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